Meet The New Post-Merger Express Scripts, Changing Certain Efforts

Now that Express Scripts Holding Company (NASDAQ: ESRX) has finally passed and completed its massive merger effort, the company can refocus its efforts and make the changes that it wants to make or needs to make.  This actually has very limited impact on any future, current, and past deals with Walgreen Co. (NYSE: WAG) and with CVS Caremark Corporation (NYSE: CVS).

Express Scripts has an SEC filing that spells out what units it plans to dump and what efforts it is going to jettison. The SEC Filing stated, “Earlier this week, Express Scripts Holding Company (the “Company”) disclosed that it was assessing strategic options for many of the businesses included in its Other Business Operations segment for ultimate disposition. In communications with its employees, the Company has provided additional details regarding which businesses may be divested. Specifically, the Company indicated that it currently intends to pursue divestiture of the diabetic testing supply and related businesses under its Liberty brand, as well as certain business units operated under the Company’s United BioSource Corporation (or UBC) subsidiary. The Company also announced its decision to dissolve the Company’s joint venture in China, wind down its business in Germany and France, and exit its European headquarters in Amsterdam.”

In short, this means that the following businesses and efforts will be removed from the company:

• divestiture of the diabetic testing supply and related businesses under its Liberty brand;
• divestiture of certain business units operated under the United BioSource Corporation (or UBC) subsidiary;
• dissolve the company’s joint venture in China;
• wind down its business in Germany and France;
• and exit its European headquarters in Amsterdam.

JON C. OGG